Gold Overbought, Crude Oversold: Market Mood Daily

Summary:  There is a crude oil buy for Thursday and Friday, then a sell over the weekend.  The current oversold condition could add fuel to any rally that might kick in.  There is a gold buy Thursday and conditional gold buy Friday.  The gold chart shows an extremely overbought condition, so a correction is due at any time, but metals can remain overbought/oversold for an extended period.   There are no USD daily trade signals through Friday.

Outlook next few weeks:  The outlook for the general trend over the next few weeks is down for crude, topping / down for gold, and upish for the USD.

Daily MMI Commodity Signals:  The latest daily signals are posted under each commodity section.  While the signals were developed with futures contracts, they can be traded using a variety of ETFs.  Changes to next day MMI signals may occur about 5% of the time, and will be announced in updates and in the daily reports should they occur.  Same day signals will not change.  Day 2, 3, or later signals reflect the most current information, and are subject to change.  Unless otherwise specified, the default trade per the daily signal is executed at market on close week days (5 PM for futures) and market on open for the weekend (6 PM Sunday for futures). A Wednesday buy signal for example, is for Tuesday close to Wednesday close.  As daily up/down signals, the MMI signals are correct about 60% of the time.  The higher probability (H.P.) signals are correct about 65-70% of the time.  Please manage your trading risk accordingly.

MMI Crude

Latest forecast info:  There are daily buys Thursday and Friday.  The chart shows an extremely oversold condition which would add fuel to a rally should one kick in.

    CL   Trade Signal H.P. ?**
8/8   BUY X
8/9   BUY X
8/12 (open)   SELL  
8/12   SELL  

**.H.P. = Higher Probability Trade Signal

MMI Gold Latest forecast info:  There is a gold buy Thursday and conditional buy Friday.  The chart shows an extremely overbought condition, so longs should keep an eye on stops.

Weekly buy level: Longs favored above 1456 GC Q. 

Weekly sell level: Shorts favored below 1453 GC Q.

    GC    Trade Signal H.P.? **
8/8  BUY  
8/9  Buy if 8/8 close > 1456  
8/12 (open)    

**H.P. = Higher Probability Trade Signal

MMI U.S. Dollar Index

Latest forecast info:   There are no USD daily trade signals through Friday.

     DX       Trade Signal H.P. ? **
8/8  NONE  
8/9  NONE  
8/12 (open)    

**H.P. = Higher Probability Trade Signal

Dr. Cari Bourette is an analyst at ElliottWaveTrader.net, where she provides her proprietary market mood analysis in our flagship service, "Avi's Market Alerts."